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  #21  
Old 09.08.2016, 15:47
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Re: What to do with 100k CHF?

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I never liked gold as it does nothing & has a holding cost, less useful than a house which you can live in
Gold has been the best performing sector this year, and continues to rise. I would be long Gold now as a portion of portfolio, especially to balance against potential equity underperformance
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  #22  
Old 09.08.2016, 15:53
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Re: What to do with 100k CHF?

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What's your time horizon?

Ray Dalio (google him) was once asked which would be the portfolio that he would leave for his children and grand-children if they knew shit about investments and his answer was:

30% Stocks : S&P 500 index or/and other US stock indexes
40% Long term bonds: 20 to 25-year US treasuries
15% Intermediate bonds: 7 or 10-year US treasuries
7.5% Gold
7.5% Commodities
.
Personally I would not be going long US Treasuries right now, especially with such a large % of portfolio.
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  #23  
Old 09.08.2016, 15:54
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Re: What to do with 100k CHF?

Is Fundsmith the new Devere?

Should I be worried if they call me?
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  #24  
Old 09.08.2016, 15:57
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Re: What to do with 100k CHF?

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Gold has been the best performing sector this year, and continues to rise. I would be long Gold now as a portion of portfolio, especially to balance against potential equity underperformance
A year is the time the Sun takes to travel around the world, it's of no relevance to the business cycle. So good performance over 7 months but well down on 5 years.
What proportion would you suggest ?
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Is Fundsmith the new Devere?

Should I be worried if they call me?
Has Devere's performance improved or even break even for any point over the last 5 years for anyone cashing in?
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  #25  
Old 09.08.2016, 16:01
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Re: What to do with 100k CHF?

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Has Devere's performance improved or even break even for any point over the last 5 years for anyone cashing in?
Someone please create a poll!

I am just about to invest with Devere because they seem to have more experience than Fundsmith!
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  #26  
Old 09.08.2016, 16:07
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Re: What to do with 100k CHF?

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A year is the time the Sun takes to travel around the world
Ummmm...
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  #27  
Old 09.08.2016, 16:07
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Re: What to do with 100k CHF?

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Someone please create a poll!

I am just about to invest with Devere because they seem to have more experience than Fundsmith!
I don't trust funds, so I'd put my money on taking over a women's gym in the middle of Aargau instead. That's a more solid investment than anything ever sold by whomustnotbenamed...


http://www.homegate.ch/buy/105899849?16
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  #28  
Old 09.08.2016, 16:08
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Re: What to do with 100k CHF?

CS = consumer staples

Last time I checked, Fundsmith was 2/3 US stocks (some 50% CS, 15% tech), plus international (mostly UK) CS (25%) and tech(10%). Compared to RHS (an equal weighted US index fund based the SP500 CS) Fundsmith barely outperforms over five years after currency adjustments (+116% after adjusting for 15% loss by the £/$ vs +110% for RHS).

To me this strongly indicates that so far, Fundsmith is likely to be a case of "in the right sector, at the right time".

Keep in mind that during the previous ten years, US CS were merely net flat, albeit with HUGE downswings - it will be interesting to see what happens once CS are no longer the "sector du jour" everybody wants have their share of.
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  #29  
Old 09.08.2016, 16:09
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Re: What to do with 100k CHF?

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A year is the time the Sun takes to travel around the world, it's of no relevance to the business cycle. So good performance over 7 months but well down on 5 years.
What proportion would you suggest ?
That's a good point, and I guess for any person blindly investing in certain asset classes, timing is harder to get right. My suggestion was based on putting 100k into certain assets now, hence not including anything for US Treasuries for example.

Personally I have about 10% in Gold-related mining stocks (higher risk, higher reward). For a less volatile Gold-related ETF to balance a long equity investment, and given where Gold is now in relation to its 5yr performance, perhaps up to 25% could be an idea.

But it's hard to blindly make very personal investment ideas to a random 'what should I do with 100k?' without knowing how the person can potentially manage investments, time horizons etc
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  #30  
Old 09.08.2016, 16:16
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Re: What to do with 100k CHF?

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The fund manager has been well known for over 30 years & has been right far to many times.

Please mention 3 funds that you would recommend instead.
Look at his CV, before Fundsmith he was just a executive "bureaucrat" on a broker-dealer, not a fund manager or stock picker.

I don't think recommending funds in a forum is the right thing to do. Instead, I would recommend learning and searching about investment funds that have been performing consistently above average for at least 15 years.
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  #31  
Old 09.08.2016, 16:16
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Re: What to do with 100k CHF?

Anyway, OP, here's what you should do with your CHF 1OOk:

1. Buy my Jaguar. You'll fit much more into it than into a Ferrari 599 and the performance isn't much different (what's half a second between friends?)
2. Buy Amgen stocks.
3. Buy a second-hand Patek Philippe watch.
4. Sponsor an African child and hope s/he grows up to become a lawyer or surgeon.
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  #32  
Old 09.08.2016, 16:19
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Re: What to do with 100k CHF?

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Keep in mind that during the previous ten years, US CS were merely net flat, albeit with HUGE downswings - it will be interesting to see what happens once CS are no longer the "sector du jour" everybody wants have their share of.
How is that net flat with huge downswings?

Interesting though how Fundsmith returned 25% since mid last year, wheras Staples barely 10%.


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  #33  
Old 09.08.2016, 16:21
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Re: What to do with 100k CHF?

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It has been solid & remains so for now. Investments should always be re-assessed, but Fundsmith is far from dead and is one of the best equity funds right now.
That's my point: it is such an young fund that you can't say whether the guy is doing good because he is indeed talented or because he has been lucky. Please note, I'm not saying Fundsmith is crap, no, it can be indeed awesome, but we can't assure for sure.
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  #34  
Old 09.08.2016, 16:22
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Re: What to do with 100k CHF?

The 15% difference are mostly caused the 15% £ drop vs the $ due to Brexit.

The last 5 years means: early/mid 2011 thru early/mid 2016. Compare the early/mid 2011 price to the previous ten years.
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  #35  
Old 09.08.2016, 16:32
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Re: What to do with 100k CHF?

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Look at his CV, before Fundsmith he was just a executive "bureaucrat" on a broker-dealer, not a fund manager or stock picker.

I don't think recommending funds in a forum is the right thing to do. Instead, I would recommend learning and searching about investment funds that have been performing consistently above average for at least 15 years.
He was a top banking analyst for many years, he got sacked for publishing a book that asked questions about the accounting policies of companies retained by his employer. 18 months later he was suddenly a hero as both Maxwell & Polly Peck had collapsed.

He fixed the pension fund deficit to the company where he was a 'bureaucrat', using the same strategy as fundsmith uses now.
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  #36  
Old 09.08.2016, 17:10
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Re: What to do with 100k CHF?

Another real-estate-oriented idea (I know many people don’t believe in real-estate as investment but in Switzerland it may actually work out quite well):
You can buy a studio in some of the Swiss ski resorts close enough to where you live now (let's say Saas-Fee as it has a fairly good summer ski season and is cheaper than Zermatt) for under CHF 150K. Put your 100K down, take the mortgage for the rest and it will cost you some CHF 450/year in mortgage interest (at 0.9%), plus some 300/month of running costs and rental agency fees, so a total of around 4000/year.
These places can easily be rented out for at least 20 weeks a year and let's assume the average weekly rate of CHF 700 (summer at 500 and winter at 900), which would bring in CHF 14K/year. So you’re earning 10K/year, minus your income tax on this (can be 35% in Vaud, depending on your tax bracket), which translates to some 7-8% annual return on your 100K with the rather low risk factor.
Since the mortgage is actually the lowest part of the cost you could put down just 35% of the property value in cash and take the rest as mortgage and be even better off (50K down, mortgage 100K = 900/year interest, total cost 4500/year, income still 14K so even a higher rate of return on your 50K investment)
Plus, you and your wife have a place in the mountains barely two hours drive from Lausanne whenever you feel like it.

Last edited by theUser; 09.08.2016 at 17:12. Reason: typos
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  #37  
Old 09.08.2016, 17:16
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Re: What to do with 100k CHF?

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Another real-estate-oriented idea (I know many people donít believe in real-estate as investment but in Switzerland it may actually work out quite well):
You can buy a studio in some of the Swiss ski resorts close enough to where you live now (let's say Saas-Fee as it has a fairly good summer ski season and is cheaper than Zermatt) for under CHF 150K. Put your 100K down, take the mortgage for the rest and it will cost you some CHF 450/year in mortgage interest (at 0.9%), plus some 300/month of running costs and rental agency fees, so a total of around 4000/year.
These places can easily be rented out for at least 20 weeks a year and let's assume the average weekly rate of CHF 700 (summer at 500 and winter at 900), which would bring in CHF 14K/year. So youíre earning 10K/year, minus your income tax on this (can be 35% in Vaud, depending on your tax bracket), which translates to some 7-8% annual return on your 100K with the rather low risk factor.
Since the mortgage is actually the lowest part of the cost you could put down just 35% of the property value in cash and take the rest as mortgage and be even better off (50K down, mortgage 100K = 900/year interest, total cost 4500/year, income still 14K so even a higher rate of return on your 50K investment)
Plus, you and your wife have a place in the mountains barely two hours drive from Lausanne whenever you feel like it.
Nice idea. Problem: Show me that 150k Studio in Saas-Fee...
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  #38  
Old 09.08.2016, 17:19
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Re: What to do with 100k CHF?

I would not put money in Swiss real estate if my goal was to eventually leave (but that's just me).

My choices would be a preferential-tax-regime college fund for the future kids and the nephew(s), or an investment in a fun partnership - a food truck, a bar, etc. - or buying a place in my home country.
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  #39  
Old 09.08.2016, 17:21
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Re: What to do with 100k CHF?

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Nice idea. Problem: Show me that 150k Studio in Saas-Fee...
https://en.comparis.ch/immobilien/ma.../show/14664250
https://en.comparis.ch/immobilien/ma.../show/13354979

BTW, a lot of these places can be on the market for a long time and the prices can be negotiated even further down.
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  #40  
Old 09.08.2016, 17:30
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Re: What to do with 100k CHF?

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Dear all,
Any ideas about best saving/investment opportunities with 100,000 francs?

Low-risk ideas please + preferably option to withdraw
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Just wait for Devere to call you, they will help you invest it.
You should have stated the amount of CHF99.99k in your opening post as the diversion, so that potential cold calling financial advisor will omit it given less than 6-digit amount to be dealt with by him.

You can always donate it (or portion of it) to the charity or sponsor shipment of c.a. 500kg of tennis equipment to Johannesburg. Last quote I got was CHF1650 and we are looking for more affordable way to donate in RSA.
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